A journal entry in accounting software is used to register the financial and accounting transactions of the business. Journal entries record all the transactions for a business, and these transactions are defined as any financial activity that can impact the business. As a transaction can create many changes in a business, a bookkeeper must keep a record of all of them.
If you are using QuickBooks online software and need to learn how to make a journal entry, we are here to help you out. In this guide, we will cover the complete steps that you can follow to create or record a journal entry in QuickBooks Online.
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What is a Journal Entry in QuickBooks?
Normally, as a transaction occurs in your account in QuickBooks online, the software will automatically record the transactions. Users must record an invoice, sales receipt, bill, etc., and QuickBooks will reflect this information in the general ledger.
However, QuickBooks users also get an option to manually create journal entries, which may be needed for correcting an error. Whenever you create a journal entry in accounting software, it must be balanced equally, i.e., the debit you make must have an equivalent credit or vice versa.
Manual journal entries are very helpful, especially when you want to cancel a transaction.
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How to Record a Journal Entry in QuickBooks Online?
You don’t have to be an accounting expert to record a journal entry in QuickBooks Online; you have to follow some simple steps to record a journal entry.
Let’s break down the simple steps that you can follow to record a journal entry in QuickBooks Online software;
Step 1. Move to Journal Entry Feature
The first step is to move toward the journal entry section on your QuickBooks online account. To do that, you have to;
- Click on the “+” icon available at the top-right corner of the file.
- A drop-down menu file known as “Create” will appear.
- Then, you have to select the “Journal Entry” option, available on the right side of the screen.
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Step 2. Enter the Date & Journal Number
Once you have moved to the journal entry form in QuickBooks Online, then the first thing that you have to do is edit the journal date. QuickBooks Online will automatically set the current date. If you’re recording a journal entry from a previous month or day, you have to provide that correct journal date.
Now, it’s time to provide the journal number. For example, if the journal number is 335, then QuickBooks will automatically number the new journal entries sequentially, i.e., the new number would be 336.
Step 3. Provide the Accounts in the Category Section
As a journal entry impacts two accounts, it’s important to add the two correct accounts so that your balance sheet can be tallied at the end.
The first account from your Chart of Accounts for the journal ledger will is the “Company Checking” account. This will be the account that will lose the money when you pay that transaction, and another one will be the account that gains the money due to the transaction.
In short, there will always be two accounts, one for credit and one for debit.
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Step 4. Provide the Credit & Debit Amounts
After selecting the correct accounts, it’s time to fill in the corresponding debit and credit amounts. These journal entries will impact your company’s financial books, i.e., the general ledger. Therefore, it becomes important that a journal entry is always balanced.
No matter how many lines are there in an entry, the debit and credit columns must be matched. Henceforth, whenever you are listing multiple payments in a single entry, you must ensure that the debits and credits are equal at the end.
Step 5. Provide a Journal Description & Save
Once the credit and debit amount in a journal entry match, then its time to complete the journal entry in QuickBooks by providing a transaction description. A description is a quick short line that explains the journal entry. You have to provide the journal description and then save and close it.
That’s how simple it is to record a journal entry in QuickBooks online account. It reflects the clearest example of the double-entry accounting system, i.e., when an account is debited, then at the same time, another account is always credited.
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How to View a Journal Entry in QuickBooks Online?
Once you are done with the process of creating journal entries in your QuickBooks online account, then let’s take a look at the steps about how you can view different journal entries in your QuickBooks online;
- Firstly, navigate to the left panel of the QuickBooks online account.
- Thereon, click on the “Reports” option.
- Afterward, you must search for the “Journal” in the particular search box.
- Navigate to the “Particular Report” period, and then click on the drop-down arrow icon that says “Month-to-date,” and then click on the “Custom” option.
- Moving ahead, edit the “Date Range” for both the beginning and ending dates on which you want to see the journal entries.
- After that, do a free click anywhere on the particular page to update the requested report.
Now, you can easily view the journal entries in your QuickBooks online account.
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How to View Journal Entries in QuickBooks Online Through Advanced Search Option?
Another method through which you can view the journal entries in QuickBooks online is via the advanced search feature.
For that, below listed are the steps that you can execute to view journal entries;
- First, move to your QuickBooks online account and click on the Magnifying glass icon.
- Move to the advanced search option and then use the particular drop-down arrow icon to search for the journal entries.
- If you wish, you can also avoid the filter field settings.
- If you are looking for old entries, you have to use the “Particular Data” filter, which will allow you to see the results within a few seconds.
- In the given type “Column,” you have to select the “Journal Entry” option.
To Summarize
That’s all with the troubleshooting steps that you can easily follow step-by-step to create a journal entry in your QuickBooks online account. If you face any challenges while performing the above-listed steps, you can contact our GoTaxation team of QuickBooks experts via mail at info@gotaxation.com. Our experts are available 24*7 around the clock to attend to your query and provide the best solution to eliminate the query hassle-free.
